Improving Safety Standards

1. Improving Safety Standards David Martin VP Safety, Environment & Sustainable Development Shell Upstream International UNRESTRICTED

2. Shell around the world • Active in more than 90 countries • 93,000 full-time employees worldwide • 43,000 service stations • 145 billion litres of fuel sold to customers each year • In 2010 we… • produced 3.3 million barrels of oil equivalent per day; • generated earnings of $20.5 billion; • spent $23.7 billion on net capital investment; and • spent over $1.0 billion on R&D UNRESTRICTED

3. Shell in Pakistan • Shell has been present in the region since 1898 • We are the largest international retail network in Pakistan • Providing fuel to 1 million customers daily • Safely supplying and distributing petroleum products across the country UNRESTRICTED

4. Sustainable Development For us, sustainable development (SD) means helping meet the world’s growing energy needs in economically, environmentally and socially responsible ways. • Delivering more energy • Unconventionals • Deep-water exploration • Cleaner fuel for power • Natural gas/LNG • Sustainable mobility • Improving fuel efficiency • Biofuels CO2 MANAGEMENT DELIVERING BENEFITS SUSTAINABLE DEVELOPMENT REDUCING IMPACTS PORTFOLIO & PRODUCTS OPERATIONS • Health and Safety • Goal Zero • Environment • Emissions and spills • Social performance • Employment and supply chain • Social Investment • Business ethics • Bribery and corruption UNRESTRICTED

5. Shell Pakistan Social Investment Programme • In 2010 Shell Pakistan invested over $1 million on social initiatives to contribute to sustainable development outcomes • Shell Eco Marathon • Flood Relief • Health UNRESTRICTED

6. Industry under scrutiny when it comes to safety Bus slams into oil tanker in Pakistan, 32 killed Associated Press – Sun Jan 23, 2011 Memorial service honors 11 dead oil rig workers USA TODAY May 25, 2010 UNRESTRICTED

7. Safety Leadership UNRESTRICTED

8. Safety is a fundamental value Safety Performance Business Performance UNRESTRICTED

9. “Safety is not only our number one priority and value, it is a fundamental reflection of our performance…” UNRESTRICTED

10. “Poor safety is nothing more than a lack of leadership.” UNRESTRICTED

11. Shell HSSE & SP Commitment & Policy UNRESTRICTED

12. Three Golden Rules (internal + external) Shell’s Golden Rules* – You and I: • Comply with the law, standards and procedures • Intervene on unsafe or non-compliant actions • Respectour neighbours * for Health, Safety, Security and Environment (HSSE) UNRESTRICTED

13. Simplify to Comply Unclear Standards Culture UNRESTRICTED

14. Shell’s Control Framework (internal + external) • It is a single source for Shell-wide requirements covering health, safety, security, the environment and social performance. • It includes all mandatory standards and manuals. UNRESTRICTED

15. Life-Saving Rules 1 2 3 4 5 6 7 8 9 10 11 12 If you choose not to follow the Life-Saving Rules, you choose not to work for Shell. UNRESTRICTED

16. Learning from Life-Saving Rules UNRESTRICTED

17. Goal Zero Goal Zero means relentlessly pursuing no harm to people and no significant incidents In 2010 Shell Pakistan had ZERO recordable incidents UNRESTRICTED

18. Safety Day • Safety Day is an annual campaign run in all Shell operations worldwide • On Safety Day all employees and contractors are encouraged to gather together to focus on safety and the journey towards Goal Zero by: • sharing ideas and good practices • working in teams on plans to deliver continuous improvement • reflecting on our personal commitment to safety UNRESTRICTED

19. Contractor HSSE Management Contractors account for our greatest risks and exposure • 95% of fatalities involve supply chain partners • Account for more than 2/3 of the Group work hours • Over 89% of Life-saving Rule violations are by contractors • Carry out over 3/4 of our activities with high & medium HSSE risks: • Drilling and Seismic • Construction • Transport • Maintenance UNRESTRICTED

20. Extensive Contractor Engagement UNRESTRICTED

21. Road Safety 1.3 billion km per year 100 times around the Earth every day UNRESTRICTED

22. Global Road Safety Expertise Centre UNRESTRICTED

23. Shell’s Global Road Safety Initiatives • In Vehicle Monitoring Systems • Driver Training • Fatigue Management • Rollover Prevention • Journey Management Working with Partners • Community Social Investment • Global Road Safety Partnership UNRESTRICTED

24. Sakhalin Seat Belt Campaign Seat belt wearing rates 5%  85% UNRESTRICTED

25. Shell Pakistan Improving Road Safety Standards • Partnership with the National Highway Authority to offer safe driving lessons to tank lorry drivers • First oil company to enforce seat-belt wearing for staff and contractors • Rest facilities and designated stop areas for drivers UNRESTRICTED

26. Shell Happy Roads Programme • Targets 7-12 year old children • Rules of the road, safety skills and habits • 23,000 children reached in over 80 public and private schools UNRESTRICTED

27. Shell Pakistan Road Transport Initiatives • Drivers’ League System • Haulier Professionalization Programme • Drug Testing for Drivers • Preventive Maintenance • Accident Investigation UNRESTRICTED

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29. Results - Our Global Safety Performance Shell Operated Ventures TRCF and LTIF per million working hours; Long-term trend data illustrates underlying improvements in occupational safety performance UNRESTRICTED

30. Challenges • Complacency • Learning Organisation UNRESTRICTED

31. Let’s continue to work together and learn from each other UNRESTRICTED

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